Following in the footsteps of Cyprus, which is confiscating up to 80 percent of bank accounts over 100,000 euros ($130,000) to pay for a crisis caused by the banks, the Greek government is set to seize bank accounts of tax debtors who aren’t paying. The measure was tucked into a multi-bill approved by the Parliament late on April 28 as a condition of getting continued international aid.
Tax debts rose by 800 million euros ($1.04 billion) in March as people buried under pay cuts, tax hikes and slashed pensions have been unable to afford paying, and tax cheats owing more than $70 billion aren’t being prosecuted swiftly. The bill includes an installment plan allowing taxpayers a series of payments over time to meet their obligations.
Companies owing between 50,000-75,000 euros ($65,418-$98,12) will be allowed to pay off their debts in 12 installments. Those owing more than 75,000 euros will be able to pay in 48 tranches.
Individuals owing up to 5,000 euros ($6,540) will be allowed 48 installments as well, while in some cases they could be given 100 monthly tranches. To qualify, however, applicants will have to submit paperwork that includes bank data. If tax inspectors find that firms or individuals have the money to pay off their debt to the state, that amount will be seized from their accounts all at once and they won’t be allowed to use the installment plan.
After Cyprus began confiscating bank accounts, some EU officials said it could be used as a model for governments to take whatever money they needed to pay for economic crises, although others insisted Cyprus was a special case. Greece, however, has opened the door for bank account confiscations, although Prime Minister Antonis Samaras and Finance Minister Yiannis Stournaras said previously it wouldn’t happen.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
